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Nokia posts an €826m loss despite selling four million Lumia phones

Things are likely to get worse for the company

THINGS JUST KEEP GETTING WORSE for struggling Finnish phone maker Nokia, as the company announced a second quarter loss of €826m today.

Nokia reported that its phone revenues were down five per cent quarter-on-quarter, which saw the company's loss plunge to €826m, compared to a loss of €487m posted in the first quarter last year.

On the upside, Nokia reported that sales of its Windows Phone powered Lumia smartphones increased to four million in the three month period, adding that it raked in €7.5bn in total mobile phone sales in the second quarter.

Nokia CEO Stephen Elop remained positive, as always, saying that the firm expects things to get better following the launch of Windows Phone 8.

He said, "We shipped four million Lumia Smartphones in Q2, and we plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8. We believe the Windows Phone 8 launch will be an important catalyst for Lumia.

"We are executing with urgency on our restructuring program. We are disposing of non-core assets like Vertu. We are taking the necessary steps to restructure the operations of the company.

"We held our net cash resources at a steady level after adjusting for the annual dividend payment to our shareholders. While Q3 will remain difficult, it is a critical priority to return our Devices & Services business to positive operating cash flow as quickly as possible."

However, are likely to get worse for the Finnish phone firm in the third quarter. Earlier this week, US network AT&T slashed the price of the company's flagship Lumia 900 handset in half, following the news that it won't be updated to Windows Phone 8.

This means that, despite shifting four million Lumia phones in the second quarter, Nokia's Lumia sales are likely to fall further in the run-up to Autumn.

Not everyone has such a negative outlook though, asNick Dillon from Ovum told The INQUIRER that the results, while bad on the surface, held some promise for the flailing phone maker. "After a run of bad news, I would say the results are a glimmer of hope for Nokia.

While it is still losing cash at a worrying rate, the fact that it has managed to double Lumia sales during each of the last two quarters shows that it is heading in the right direction," he said.

"If it can keep this momentum up then there is a chance it could turn things around." µ